It would be nice if every financial lender had your best interests at heart. Unfortunately, this isnt always the case. Bad lenders, sometimes called predatory lenders, have generated a number of scams to rob you of your hard-earned money.

Home equity loan scams are especially popular with predatory lenders. To protect yourself and your property, you need to know what to watch out for. Here are the most common home equity scams:

Loan Flipping

This home equity loan scam has become so commonplace that many states now have laws to prevent it. Loan flipping is a term used for a loan that has been refinanced repeatedly. In most cases, each successive loan will have a higher lending fee than the last. Lenders use these fees to pad their pocket. And, with each loan flip, you increase your debt, making it easy to get in over your head and lose your home.

Equity Stripping

If your lender suggests padding your income on your home equity loan application, beware! If lenders encourage you to get a home equity loan, knowing that your monthly income isnt sufficient to make the payment, it may be because they have their eye on your equity. If you cant make the payments, the loan will be in default. The lender can then take your home and strip you of the equity. Here is a list of recommended Home Equity Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.

Deceptive Lending

Deceptive lending occurs all too often with home equity loans. In some cases, the lender will provide you with inaccurate information in regards to account statements or pay-off figures, making it difficult to determine what the state of your loan actually is. In other cases, lenders tack on fees simply hoping that they go unnoticed. The goal is to confuse you to the point that you end up paying more than you actually owe.